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Help! Air only collects Alabama State Tax and does not collect the 7% Local Tax

#1

I’ve been with Airbnb for a year now. I’ve been very successful, but have one complaint. Airbnb only collects the State Tax, but does not collect the local 7% hospitality tax that I have to pay on a monthly basis. This has cost me personally thousands of dollars out of my own pocket. Airbnb suggests that I collect the 7% through the resolution center before check in. However, I have looked at other listings on Dauphin Island and nobody else is doing that. Also, I can’t increase my price any further, due to the competition’s pricing. Any suggestions…or, am I just going to have to keep paying the 7%. Anyone else have this same issue???

#2

It seems foolhardy to be paying thousands out of your own pocket.

Add the 7% to your listing and see what happens.

#3

I agree. Very foolhardy. I’ll add the 7% to my listing now…we shall see! Thanks!

#4

@bcswain
Just now saw your thread and just wanted to mention that you may need a tad more than 7% because you have to offset the 3% loss due to credit card fees. That’s why my Airbnb rates are 3% higher than my direct booking/cash prices.

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